1955 (3) TMI 44

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....der section 66(1) of the Indian Income-tax Act, 1922, and arises out of the Tribunal's order in Income-tax Appeal No. 583 of 1951-52. The following question has been referred by the Income-tax Appellate Tribunal, Bombay, for judgment: "Whether on the facts and circumstances of the case the sum of Rs. 10,000 received by the assessee is liable to be assessed as the assessee's income....

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....Shri K.B.M.E.R. Malak, governing director of the company; and (3) Shri P.B. Kale, managing director of the company. These three persons were collectively paid by the managing agents a monthly remuneration of Rs. 2,000 which was divided amongst the three persons in the ratio of 3:4:9. In the meeting of the board of directors of the managing agents held on 8th May, 1945, the following re....

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....en held as his income by the taxing authorities. The question is whether this amount can be said to be compensation for loss of employment within the meaning of explanation 2 to section 7(1) of the Indian Income-tax Act. 5. It is to be noted that the assessee continues to be the governing director of the managing agents, although his remuneration has been reduced. As a matter of fact, it is on ....

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....director, for which he was receiving a remuneration of GBP6,000 a year. By a subsequent agreement he released the company from its obligation to pay him the pension and agreed to accept a salary of GBP2,000 a year in consideration of the company agreeing to pay him GBP40,000. It was held that neither the pension nor the sum paid to commute it constituted profit of an office within the meaning of r....